The key topics featured in the WAEC 1994 Economics questions include banking and finance, unemployment, fiscal policy and foreign direct investment. You will also find such popular high school Economics topics as demand, supply, opportunity cost and the factors of production.
Still, be on the lookout for such equally important topics in the high school Economics syllabus as the theory of the firm, national income and price determination.
Just like the 1993 SSSCE Economics past questions, expect most topics from the WAEC 1994 Economics past objective questions to be repeated in your next Economics test.
You must always bear in mind that it does not matter how long ago the 1994 Economics test or any other year’s was. The high school Economics syllabus will largely remain the same.
We shall begin with the first batch of the WAEC 1994 Economics questions and answers and then move on to the rest in that order.
Are you ready to have your past questions for the WAEC 1994 Economics objective paper? Then let’s dive in.
SSSCE 1994 Economics Questions 1-10
1. Another name for opportunity cost is
A. money cost B. social cost C. real cost D. revenue cost
2. Production ends with
A. consumption B. transportation
C. a price elastic demand D. a price inelastic demand
3. The sale of second-hand spare parts is an example of
A. an industrial activity B. a primary economic activity
C. a secondary economic activity D. a tertiary economic activity
4. Most people in Ghana are employed in the
A. manufacturing sector B. primary sector
C. secondary sector D. tertiary sector
5. The largest contributor of foreign exchange in Ghana now is
A. pineapple B. timber C. gold D. Hydroelectricity
6. What is the median of the following set of numbers: 8, 13, 20, 18, 5, 3, 15, 25, 23?
A. 15 B. 25 C. 23 D. 5
7. If a government wants to get more revenue it would increase the tax on a commodity with
A. an income elastic demand B. an income inelastic demand
C. a price elastic demand D. a price inelastic demand
8. Palm oil and palm kernel are in
A. complementary supply B. competitive supply
C. composite supply D. relative supply
9. Which of the following variables falls when the law of diminishing returns begins to operate?
A. total products B. marginal products
C. average products D. total utility
10. A business which is owned by the government together with private investors is known as a
A. co-operative B. partnership
C. joint-venture D. statutory corporation
November 1994 Economics Questions 11-20
11. If a monopolist reduces price to sell more, then his
A. AR=MR B. MR=MC C. MR>AR D. MR<AR
12. Malthus’ population theory has been proved wrong because of
A. imports of raw materials from the less developed countries
B. improvement in technology
C. higher education level
D. the first and second world war
13. The poorer the country, the larger the percentage of the total labour force engaged in
A. trading B. construction C. agriculture D. manufacturing
14. Cash is the name given to
A. coins B. currency notes
C. currency notes and coins D. currency notes and demand deposit
15. It is easy to determine the relative prices of commodities because money functions as a
A. medium of exchange B. store of value
C. unit of account D. standard of deferred payment
16. An increase in investment of ₵10,000.00 results in an increase in national income of ₵40,000.00. the marginal propensity to consume is
A. ¾ B. ¼ C. 4 D. ₵30,000.00
17. The difference between the Gross Domestic Product and Net Domestic Product is
A. foreign investment B. depreciation allowance
C. capital expenditure D. income leakage
18. Which of the following determines the amount of currency in circulation
A. The commercial banks B. The central government
C. traders D. The public
19. A firm’s variable cost of production will be zero if
A. fixed costs are not high B. profits are very high
C. it operates at the lowest capacity D. it shuts down
20. In imperfect competition, the elasticity of demand is
A. less than infinite B. zero C. infinite D. not calculable
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WASSCE 1994 Economics Questions 21-30
21. in the short-run, an increase in imports would
A. reduce exports B. increase exports
C. increase the national income D. decrease the national income
22. The most important source of revenue for the government of Ghana is
A. personal income tax B. company tax
C. imports and exports duties D. excise tax
23. Fiscal policy relates to
A. interest rate B. money supply
C. public debt management D. public savings
24. When planned government expenditure exceeds expected revenue, we talk of
A. an excess expenditure B. an excess revenue
C. a budget surplus D. a budget deficit
25.
26.
27. The rate of population growth has increased in developing countries in recent years because of
A. a rise in the birth rate B. increased food aid
C. improvement in medical knowledge D. increased incomes
28. Which of the following factors is the most important in choosing a location for a bakery?
A. source of raw materials B. market
C. source of labour D. source of fuel
29. Workers are exploited if
A. their wages are below the subsistence level
B. their wages are below the marginal revenue level
C. they work under unpleasant conditions
D. they do not get all the profit in the form of wages
30. Which of the following is true of the price system?
A. it discriminates in favour of those who have the most money to spend
B. every consumer has an equal voice in determining what is produced
C. it always results in the greatest good for everyone
D. it is an efficient way of getting goods and services produced.
WAEC Economics 1994 Questions 31-40
31. If population grows faster than the Gross National Product,
A. wages will fall B. profit will fall
C. interest rates will fall D. per capita income will fall
32. One common characteristic of all less-developed countries is
A. lack of natural resources
B. high population per square kilometre
C. low ratio of capital to labour
D. high rate of savings
33. A good may have economic value because
A. it is important
B. nobody wants it
C. it can satisfy human wants
D. consumers want to pay for it
34. Demand is elastic if,
A. consumer can buy the commodities at any price
B. it is unresponsive to price change
C. It is very responsive to price change
D. it shifts a great deal from year to year
35. Which of the following is not part of the ‘vicious circle of poverty’?
A. per capita income B. birth rate
C. output per head D. saving rate
36. A successful adverting campaign will generally make the demand for the advertised product
A. elastic B. constant C. inelastic D. fall
37. Commercial banks’ lending ability is greatly influenced by the
A. demand for loans B. Cash ratio
C. bank rate D. clearing house
38. In the long run, all costs of the firm can
A. rise B. fall C. fluctuate D. vary
39. If interest rates rise, the amount of money people would want to hold will
A. appreciate B. depreciate C. fall D. rise
40. If persons are unemployed because their skills are not matched with job openings their unemployment is
A. seasonal B. temporal C. structural D. frictional
Nov Dec 1994 Economics Questions 41-50
41. Supply is likely to be elastic in the
A. short run B. long-run C. market period D. intermediate period
42. The demand for a commodity is not influenced by
A. income B. taste C. substitute D. need
43. If milk is complementary to tea, a rise in the price of milk will
A. increase the demand for tea B. decrease the demand for tea
C. leave the demand for tea unchanged D. increase the demand for milk
44. Demand has no effect on price if
A. supply is perfectly inelastic B. demand is perfectly inelastic
C. demand is perfectly elastic D. supply is perfectly elastic
45. The basic force governing the allocation of resources in a market economy is
A. money supply B. factor prices
C. consumer demand D. social needs
46. The difference between the Managing director’s salary and the labourer’s wage is the result of
A. government decision
B. an exception to the marginal productivity theory of wages
C. absence of competition in the labour market
D. the influence of demand and supply
47. If commercial banks expand the money supply by making new loans the interest rate will
A. fall B. rise C. fluctuate D. remain stable
48. A town development committee’s levy of ₵2,000.00 per head is a
A. progressive tax B. proportional tax
C. regulative tax D. regressive tax
49. Surplus payment to a source whose supply is inelastic is called
A. economic rent B. quasi rent
C. land use rent D. capital goods rent
50. The market rate of interest is likely to rise above the real rate of interest during
A. depression B. stagnation C. deflation D. inflation
Questions 51-60 WAEC 1994 Economics
51. Which of the following is the best description of the role of profits in a free enterprise economy?
A. Rewards for owners of capital
B. encourage people to work harder
C. attract resources to areas where consumer benefits are greatest
D. provide income for people with capital to spare
52. One strong advantage of imposing income tax is that it
A. cannot be evaded B. is based on the ability to pay
C. encourages people to work harder D. cannot be passed on to others
53. A very high interest rate will
A. depress the economy B. stimulate economic growth
C. encourage investment D. expand output
54. Select from the following the factors which, by itself, is least likely to raise output per head
A. growth of the capital stock B. adding new land to cultivation
C. growth in the size of the population D. inventions
55. The market value of final goods and services produced in a year is the
A. Net Domestic Product B. Gross Domestic Product
C. current Domestic Product D. market Domestic Product
56. Many would want to borrow and few would want to lend when
A. unemployment is rising very fast
B. there is widespread shortage of goods
C. there is very rapid inflation
D. consumer goods are heavily taxed
57. The period of time that does not permit an increase in the supply of a firm’s output is the
A. seasonal period B. short-run period
C. long-run period D. market period
58. For money to perform its function efficiently it should
A. have purchasing power B. be replaceable at low cost
C. be capable of satisfying needs D. be stable in value
59. The marginal propensity to consume is the
A. consumption of those living at the margin of subsistence
B. consumption of marginal workers
C. percentage of income consumed
D. percentage of additional income consumed
60. International specialization and trade would increase world output if opportunity cost ratios are
A. the same in various countries B. different in various countries
C. high in various countries D. stable in various countries
More Resources
There are a lot more tips and tools you can access on this website to help you increase your chances of success in the coming examination. So do not restrict yourself to the WAEC 1994 Economics questions and answers only.
Check out the below additional study resources to boost your Economics test preparations.
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